Everybody has a different need that’s why people talk to financial analysts to get their holistic financial affairs before getting advice; this is according to Gerald Mwandiambira.
Mwandiambira, a certified financial planner, added that the market performance and volatility were a big concern currently.
“What we have right now is information overload but the biggest concern for every person we talk to is making sure they do not get poorer,” he said.
“The core concern is the direction and future of the South African economy.”
The South African rand hit a record seven year low on Sunday night trade coming close to touching 18.00 to the US dollar.
Mwandiambira said over the last two years South African economy has seen a steady decline of the rand calling for improved savings. He added that preventing bigger risk starts from basic savings urging potential investors to consult with wealth managers.
“Realistically speaking, the rand is a big risk and people are looking for ways to hedge their investments against the rand,” he said.
“Hedging does not necessary always involve sending money offshore; one can hedge using assets that retain value such as property.”
He warned against fraudsters due to market volatility.
“There are a lot of Ponzi schemes and a lot stuff popping up on the internet because people take advantage of volatility and uncertainty in the market and also lack of financial wisdom of consumers.”
He urged people to verify financial products with the Financial Services Board on the legitimacy of offerings before making investments and not to be misled by bona-fide looking investments like nice brochure and pamphlets.
Mwandiambira warned that there is a lot of people who try to thrive in adversity hence the need to be on the lookout of where one puts own investment.
He also warned that though long life was a welcome development, people were forced to shun retirement which was affecting retirement industry.
“A lot of people retiring are taking part of pension fund lump sum and investing it with some taking consultancy as an avenue.”